BCE Loses Second Cellular Contract in India
India's decision to award cellular licenses to joint ventures led by France Telecom, Australia's government-owned OTC, Bell South Corp., and Britain's Vodafone Group PLC, came as a blow to BCE Inc.'s international expansion plans. The telecommunications company had initially won a contract for Delhi in 1992, but lost it after a court ruling declared the awarding process flawed. BCE's joint venture, Tata Cellular, was denied the contract again this week, despite a second reassessment by the Indian government.
Key Takeaways:
- BCE's joint venture, Tata Cellular, initially won a cellular contract for Delhi in 1992, but lost it after a court ruling.
- The Indian government awarded the contract to a joint venture led by Australia's government-owned OTC.
- BCE's bid was rejected for the second time, despite a second reassessment by the Indian government.
- BCE has other international telecommunications ventures underway, including a partnership in Colombia and a manufacturing arm with contracts in several countries.
- The company has a significant presence in the global telecommunications market, with investments in New Zealand and Britain.
Statistics:
- There are 230 million people in India's urban population, with fewer than 10 phone lines for every 1,000 people.
- In contrast, Canada has 780 phone lines for every 1,000 people.
- BCE's manufacturing arm, Northern Telecom Ltd., has won major contracts in Colombia, Taiwan, China, and Mexico.
- The company intends to invest up to $180-million (U.S.) in its Colombian partnership.
- BCE owns 24% of New Zealand long-distance company Clear Communications Ltd. and 20% of British phone company Mercury Communications Ltd.
Sources:
- "BCE Loses Second Cellular Contract in India" by unknown author, unknown publication (exact source not specified)
- Various articles and press releases from Business Wire and BCE Inc.
- Court rulings and news articles from the Globe and Mail, including "BCE Loses Second Cellular Contract in India" by unknown author.